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Sharing passwords

Sharing Legal Documents and Passwords

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Safe and shareable password storage is vital in today’s computerized world. The old solution–writing down passwords on paper set next to your keyboard–is not safe, not adequate, and not shareable.

How do you effectively share legal documents and passwords?

While parents are alive and well is the time to prepare for the future, when they might begin to decline. An adult child who is a primary agent and executor has questions about organizing documents and managing storage in a digital format as well as how to secure parents’ passwords for online websites. The advice from the article “Safe sharing of passwords and legal documents” from my San Antonio is that these two issues are evolving, and the best answers today may be different as time passes.

Safe and shareable password storage is a part of today’s online life. However, passwords used to access bank and investment accounts, file storage platforms, emails, online retailers, and thousands of other tools used on a computer are increasingly required to be strong and complex and are difficult to remember. In some cases, facial recognition is used instead of a password.

Many rely on their internet browsers, like Chrome, Safari, etc., to remember passwords. This leaves accounts vulnerable, as many of these and other browsers have been hacked.

The best password solutions are stand-alone password managers, such as LastPass. They offer the option of sharing the passwords with others, so parents would provide their executors with access to their list. However, there are also new laws regarding digital assets, so check with your estate planning attorney. You may need to create directives for your accounts that specify who you want to have access to the accounts and the data that they contain.

Storage of legal documents is a separate concern from password sharing. Shared legal documents need to be private, reasonably priced, and secure.

Some password managers include document storage as part of the account. The documents can be uploaded in an encrypted format that can be accessed by a person who is assigned by the account owner.

Document vault websites are also available. You will have to be extremely careful about selecting which one to use. Some of the websites resell data, which is not why you are storing documents with them. One company claims to offer a “universal advance digital directive,” which they say can provide digital access worldwide to documents, including an emergency, critical, and advance care plan.

The problem? This company is located in a state that does not permit the creation of a legally binding advance directive, unless it is in writing, includes state-specific provisions, and is signed in front of either two qualified witnesses or a notary.

Talk with your estate planning attorney about securing estate planning documents and how to protect digital assets. Good planning includes sharing your legal documents and passwords. Your attorney’s knowledge of the laws in your state will provide the family with the proper protection now and in the future.

Reference: my San Antonio (October 14, 2019) “Safe sharing of passwords and legal documents”